San Bernardino finds bankruptcy and foreclosure ugly cousins
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Do you think San Bernardino will rebound from bankruptcy as quickly as Orange County did in 1994?
- No (92%, 101 Votes)
- Yes (8%, 9 Votes)
Total Voters: 110
High foreclosure rates may bankrupt cities, a recent news article reports.
San Bernardino, Stockton and Mammoth Lakes each declared bankruptcy this year. The high foreclosure rates in all but Mammoth Lakes (whose bankruptcy was due to a court judgment) indicates a tangible connection between residential foreclosures and city insolvency.
Related articles:
City’s cancellation of development agreement is not justified by city’s unexpected interference
Foreclosures have further depressed already-low housing prices in these cities, thereby reducing city revenues due to plummeting property taxes.
Between 2006 and 2009, property values in San Bernardino dropped 65.6%. Though prices have increased since 2009, they remain at less than half their bubble value in 2006. Low assessed property values mean low property taxes, causing revenue shortfalls for local governments – something California is especially susceptible to under Proposition 13 (Prop. 13).
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About The Author
Sarah Cantino
is lead editor for the Landlords, Tenants and Property Management and Real Estate Property Management books.
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Prop 13 is irrelevant in that many properties were sold at the height of the market, anyway. This turns on fed reserve policy and governments broken theory to create unsustainable hyperinflation to fill their coffers by hyper inflating the real estate property tax. The public sector can not keep paying themselves a higher salary then the private sector and giving themselves merit raises unabated statewide while private sector jobs go overseas. The private sector will never recover while supporting a hyper-inflated public sector life style.
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The problem is when I got out of the service in 1959 my dad said you can go to work for the government but your pay will be below that of the private sector but there is good retirement benefits. Today you have government workers making more than the private sector in like jobs and they have great retirement benefits. It is crazy that governmetn workers make more than the people that pay there jobs. The governemnt have to change there salaries and retirements to be more in line with the private sector or there will be many more cities, counties and state governments going BK. Government employees in unions is a slap in the face to the citizens of this country. Think about it, the unions are for tenure and to get a uniom employee that should be fired, fired is impossible. Take the Cal Trans employee that was inspecting bridges, he falsified reports got fired the unon got him back in his job long enough so he could retire and get tax payer funds when he should have been thrown in jail and not got a cent of retirement. Governor Brown is betting that the people of this state are going to pass the 1% sales tax hike and if you people vote for it you dserve what you are getting form this union run state with the democrats in control.
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Finally, the great majority of the American people are awakening to the massive and almost inconceivable fraud that has been perpetrated upon them by the banking elite not only just since 2008, but for centuries!
A group of Swiss scientists have run a super-computer program to ascertain the ties between banks and corporations worldwide. What they came up with is truly startling–a tiny handful of corporations controls–by means of cross-ownership and control–a staggering 80% of all the world’s wealth.
And here is what is even more startling: The most powerful inner group of that small circle of controlling corporations are banks. And, it doesn’t end there. The controlling banks are all owners of the FED. Yes, the FED is NOT and never has been a government agency, but is a privately held corporation whose owners are the big banks.
Information is coming forth from a new book just out (authored by a government official who was there behind the closed doors in 2008) explaining how obsequiously Hank Paulson, Timothy Geithner, and other government officials bowed to the whims of the banking elite during the crisis and ended up serving THEIR needs, not the needs of the American people.
The LIBOR scandal is the shot across the bow. It will continue to expand, as local, state, and federal governments bring lawsuits against the criminal parasites (bankers) that have sucked the life blood of mankind for far too long.
The goal will be to break the back of the Banking Cartel and finally free us all from the immoral and criminal manipulations that it perpetrates.
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Current payouts to government workers can not be sustained, San Bernadino and many other communities will have to go bankrupt before unions see the light. We hope that happens before California becomes Greece.
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